A variety of billing systems are currently used by professionals such as doctors and dentists to bill patients for professional services rendered. For example, many doctors handle billing and collections within their own office, typically employing a person to assist them in this capacity, or utilizing receptionists and/or medical assistants to perform billing and collection duties. Similarly, many hospitals and clinics employ accounting departments to perform billings and collections.
In order to relieve physicians, dentists and medical institutions, etc. (referred to generally herein as "providers") of the cost and difficulty associated with patient billing, a number of companies offer billing and collection services to the medical community (referred to generally herein as "servicing companies"). For example, one such servicing company issues a charge card to each of the patients of a provider, with the patients using the charge card to pay for medical services as the services are provided. The provider transmits the charge information to the company (e.g., electronically or by phone) and the servicing company sends a bill to the patient. Once the servicing company is paid by the patient, the company deducts its fee (usually a percentage of the total amount paid) and forwards the remainder of the funds to the provider.
One disadvantage to this type of charge card system is that the provider must wait for the patient to remit payment to the servicing company before any funds are paid to the provider. As a result, some providers prefer to use the services of servicing companies that create "funded" charge accounts. For funded charge accounts, the servicing company establishes a line of credit for each creditworthy patient and will immediately pay the provider for medical services provided to the patient up to the available credit line. The servicing company will then proceed to collect the funds from the patient. These credit card systems therefore are similar to traditional credit cards like Visa and Mastercard, and each patient must submit credit information and be approved for a credit line in order to be granted a funded charge card.